Saskatoon uranium giant Cameco (TSX:CCO) started its $520 million hostile bid for Vancouver-based Hathor Exploration (TSX:HAT) Tuesday.
The deal, unveiled last week, would see Cameco expand its asset base in Saskatchewan’s uranium-rich Athabasca basin with the acquisition of Hathor’s flagship Roughrider deposit, which is believed to contain nearly 60 million pounds of uranium. (See “Cameco launches hostile takeover bid for Hathor” – BIV Business Today, Aug. 26.)
Hathor issued a response to the hostile bid Monday, urging shareholders to take no action in response to Cameco’s offer.
Hathor called the offer “opportunistic,” noting that it takes advantage of the low price environment uranium players have suffered through following the Fukishima nuclear power plant disaster in Japan earlier this year. (See “Junior firms face meltdown as investors run for cover after quake rattles Japan” – issue 1117; March 22-29.)
The Vancouver company also said it has yet to receive a formal offer from Cameco.
“The company urges its shareholders not to respond to the Cameco offer until the company has received the formal offer,” said Mike Gunning, Hathor’s president and CEO.
The bid has also created buzz for another B.C. uranium explorer – Fission Energy (TSX-V:FIS).
The Kelowna-based junior is using the deal to shed new light on its Saskatchewan uranium plays, which are located directly adjacent to Hathor’s.
Montreal-based investment bank Versant Partners issued a report Friday saying the Cameco bid for Hathor is “particularly interesting” for Fission, which has seen its share price climb 40% to $0.70 per share since the takeover was announced.
At press time, Hathor’s shares were up $0.10 to $4.05.
Joel McKay
Twitter:jmckaybiv